Products Liability Law Daily Wrap Up, JURISDICTION—AIRCRAFT AND WATERCRAFT—E.D. Pa.: Shipbuilder wins dismissal of bridge-collapse claims despite Pennsylvania jurisdiction, (Aug 6, 2026)

By Pankhuri Bhatnagar, B.A. LL.B.

Dismissal of the Pennsylvania suit was warranted in light of a forum-selection clause requiring arbitration in England and litigation in South Korea.

In an action brought against a shipbuilder by the owner and operator of the cargo vessel M/V Dali following the Francis Scott Key Bridge collapse, a federal district court in Pennsylvania granted the shipbuilder's motion to dismiss on forum non conveniens grounds. The court found that it possessed general personal jurisdiction over the shipbuilder under Pennsylvania's consent-by-registration statute and the Dormant Commerce Clause challenge lacked merit. Nevertheless, dismissal was required because the parties' settlement agreement incorporated a valid forum-selection clause, the vessel operator was bound by that agreement, and the owners failed to identify any public-interest factors overcoming the presumption in favor of enforcing the parties' chosen forum (Grace Ocean Private Ltd. v. Hyundai Heavy Industries Co., No. 25-4374 (E.D. Pa. Aug. 3, 2026)).

Background. In 2014, Hyundai Heavy Industries Co., Ltd. (HHI or builder) constructed the cargo vessel M/V Dali in South Korea and delivered it to its first owner, Stellar Marine LLC, in 2015. Before construction, HHI and Stellar entered into agreements governing the vessel's construction, warranty obligations, and dispute resolution, including arbitration provisions under English law. Ownership of the vessel was transferred to Grace Ocean Private Limited (Grace Ocean) in 2016. In 2021, Grace Ocean, HHI, Stellar, and other entities executed a settlement agreement resolving warranty disputes, which incorporated the arbitration provisions contained in the earlier contracts. On March 26, 2024, the Dali lost electrical power and propulsion while departing the Port of Baltimore, struck the Francis Scott Key Bridge, and caused the bridge to collapse into the Patapsco River, resulting in the deaths of six construction workers and other alleged injuries. Grace Ocean and vessel operator Synergy Marine Pte. Ltd. (Synergy) later commenced limitation-of-liability proceedings in Maryland, while HHI initiated arbitration in London alleging breaches of the settlement agreement. Grace Ocean and Synergy then filed the present action in Pennsylvania asserting products liability, breach of implied warranty, negligent misrepresentation, negligence, and indemnity or contribution claims against HHI. HHI moved to dismiss for lack of personal jurisdiction or, alternatively, on forum non conveniens grounds.

Personal jurisdiction. HHI argued that Pennsylvania lacked both general and specific personal jurisdiction because the Dali was designed and constructed in South Korea, initially sold in the Marshall Islands, and reached the United States only through decisions made by later owners and operators. Grace Ocean responded that HHI had expressly consented to general jurisdiction by registering to do business in Pennsylvania and appointing an in-state agent for service of process. Applying Mallory v. Norfolk Southern Railway Co., 600 U.S. 122 (2023), the court agreed with the owners. Mallory reaffirmed Pennsylvania Fire Insurance Co. v. Gold Issue Mining & Milling Co., 243 U.S. 93 (1917), which held that a foreign corporation's registration to conduct business coupled with appointment of an in-state agent constitutes consent to general jurisdiction. The builder had registered in Pennsylvania in 2002 and continued to enjoy the benefits of doing business in the Commonwealth. Accordingly, the court concluded that Pennsylvania could exercise general personal jurisdiction over the builder.

Dormant Commerce Clause. HHI alternatively argued that Pennsylvania's consent-by-registration statute violated the Dormant Commerce Clause by imposing an unconstitutional burden on interstate commerce. The court rejected that argument. It observed that the Supreme Court's decision in Mallory addressed only due process and that Justice Alito's separate concurrence discussing the Dormant Commerce Clause was not controlling. The builder cited no binding authority invalidating Pennsylvania's registration statute on Dormant Commerce Clause grounds, and another judge of the same district had recently upheld general jurisdiction under the statute in Brider v. Sig Sauer, Inc., No. 25-6645, 2026 U.S. Dist. LEXIS 45018 (E.D. Pa. Mar. 5, 2026). The court therefore reaffirmed that Pennsylvania's registration statute remained enforceable.

Forum non conveniens. Although personal jurisdiction existed, HHI argued that dismissal remained appropriate under the doctrine of forum non conveniens because the parties had agreed to arbitrate disputes in England and litigate related matters in South Korea. The court explained that where parties have entered into a valid forum-selection clause, the private-interest factors automatically favor the chosen forum. Atlantic Marine Construction Co. v. United States District Court, 571 U.S. 49, 64 (2013). The builder also demonstrated that South Korea constituted an adequate alternative forum under Piper Aircraft Co. v. Reyno, 454 U.S. 235 (1981), and Lacey v. Cessna Aircraft Co., 932 F.2d 170 (3d Cir. 1991), because the dispute centered on construction activities occurring in South Korea and much of the relevant evidence and witnesses were located in South Korea and Singapore. Grace Ocean argued that Synergy was not bound because it signed the settlement agreement only as a witness. The court rejected that contention. Both Grace Ocean and Synergy signed the agreement beneath the prefatory language, both entities were identified throughout the agreement as jointly operating the vessel, and Synergy's signature could not reasonably be treated as merely acknowledging the document. The court therefore concluded that Synergy, like Grace Ocean, was bound by the agreement's dispute-resolution provisions.

The court further held that the owners failed to identify any public-interest factors sufficient to overcome the strong presumption favoring enforcement of the forum-selection clause. Public-interest considerations rarely defeat enforcement of such clauses, Atlantic Marine, 571 U.S. at 64, and the owners largely confined their arguments to the validity of the forum-selection provision and the private-interest factors. Having failed to preserve any meaningful public-interest arguments before the district court, those issues were deemed waived. Accordingly, although the court possessed general personal jurisdiction over HHI, it concluded that dismissal on forum non conveniens grounds was required in light of the parties' contractual choice of forum.

The case is No. 25-4374.

Judge: Scott, K.

Attorneys: Alan M. Weigel (Blank Rome LLP) for Grace Ocean Private Ltd. Alan E. Schoenfeld (Wilmer Cutler Pickering Hale and Dorr LLP) for Hyundai Heavy Industries Co. Ltd.

Companies: Grace Ocean Private Ltd.; Hyundai Heavy Industries Co. Ltd.

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